the states created the federal government. [applause] these were the words of president ronald reagan in his first inaugural address. as a governor, i love those words. i love those words more than ever right now. they should remind us that real reform does not happen in the nation's capital it happens in our state houses across this great country. [applause] think about it. back in my state, welfare reform happened in the states. it took a couple times to get but newt gingrich finally got bill clinton to sign it into law. when ronald reagan was tnt president but the governor of california and tax reform happened in that state. when ronald reagan was the president and signed the law that slashed marginal tax breaks. real reform happened in the states. this was mentioned yesterday, in america there are 30 states that are republican governors and nearly as many that have republican legislatures. [applause] that's the good news. the good news is we have success and it is happening in our states and we can learn from that to tell